Monday, February 15, 2010

Mining Industry: Energy Prices Rising

Commodity Prices Going Up

The mining industry has come out in force saying there is no doubt energy prices will continue to rise over the next five years, with oil increasing to over $100 a barrel.

While this will probably be true, with at least price increases at some level, the mining industry added that energy is far from the only raw material or other commodity sector poised to increase in price.

Almost every single future factor will confirm that prices for most commodities will continue to rise based on emerging markets, China, and an increasing population.

Those elements alone will push commodity prices up, even if nothing else happens.

It's only a matter of when it'll happen and with what commodity. To me, the recent tightening in China will only have an effect upon those commodities not that high in demand, as the iron ore price negotiations reveal.

Commodity Prices Going Up

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